Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

Tobacco in the United Arab Emirates

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

Executive Summary

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

Selective tax and VAT implemented across the GCC

In light of declining oil revenues, the GCC, including the United Arab Emirates, are following a diversification plan, which includes the introduction of 5% Value Added Tax (VAT), to take effect from January 2018. The Federal Tax Authority also implemented a selective tax of 100% on tobacco in October 2017, which has been in the offing for some time.

Risk of counterfeit products

The introduction of selective tax and VAT brings with it the risk of cheaper alternatives entering the market. These counterfeit products could pose a health risk.

The competitive landscape shifts due to movements between price segments

Philip Morris Management Services (Middle East) maintained its leading position in cigarettes in 2017 thanks mainly to its popular premium Marlboro brand. However, in light of the selective tax implementation there was a noticeable shift from premium to mid-priced tobacco brands.

Tobacco specialists is the main distribution channel for cigars and smoking tobacco

Tobacco specialists enjoy a widespread presence across the country, with most outlets being located in shopping centres. They tend to have a separate space to showcase the latest cigars, with specialist staff on hand to advise customers.

New tax laws are set to impact tobacco

Whilst tobacco consumption will remain entrenched in the United Arab Emirates, shifts between price bands are likely to be observed. Smoking prevalence and volume sales of cigarettes are predicted to decline in the forecast period, as prices are now be comparable to most countries in the West.

Files are delivered directly into your account within a few minutes of purchase.